Why Should You Choose A&A for Business Setup in India?
- 100+ Clients assisted in setting up a foreign company in India
- 5+ Billion worth corporate transactions handled last year
- Startup Centric Legal Expertise
- Specialized Services for Foreign Nationals
- Advisory on Post-incorporation Filings
Comprehensive Assistance from Top Advocates in India
Billion worth corporate transactions handled last year
Clients assisted in setting up foreign companies in India
Presence and representations made in High Courts and NCLTs
Years of cumulative partner experience
A&A’s Expertise In Business Setup Services
Ahlawat & Associate is a committed Law firm with the express purpose of supporting foreign and national business groups to set up their business in India, specifically for business setup in India from the US. The firm recognizes the concerns relating to the development of an organization in the Indian climate and ensures that our clients get complete assistance involved with the legality and compliance of setting up business in India.
We understand Indian politics, industry, and corporate needs profoundly and have a team with specialized knowledge of both the legal framework as well as the specific business requirements to guide our clients through the smooth establishment of the company.
We are one of the leading business setup consultants in India for foreign companies who can provide you with value-added insight and tips for beginning business/trading in India.
Setting Up A Business Operations In India For Foreign Companies
There are a number of options available to a foreign investor wanting to set up business operations in India. Taking into consideration that foreign equity in Indian companies can go up to 100%, subject to equity caps in the respective areas of activities under the policy of Foreign Direct Investment (FDI).
From choosing the right legal structure to registering your company, our professionals can help you to incorporate a company in India quickly and efficiently.
As an Indian CompanyA foreign company/ investor that wishes to commence its operations in India can begin operations either via (i) Joint Ventures or (ii) a Wholly Owned Subsidiary (subject to 100% FDI permission for the activities being carried out)
As a Foreign Company
India also provides more cost-effective options to a foreign company wanting to test the waters before plunging into full fledge operations:
2.1. Liaison Office/Representative Office:The liaison office acts as a bridge between a primary place of business i.e. the country of origin and entities in India. No commercial activity can be undertaken in a Liaison Office, and therefore, it does not “earn” in India. Such an office plays a limited role of collecting adequate information about required market opportunities and providing data about the company / its products to the Indian market. However, with RBI (Reserve Bank of India) approvals and other permits, such a representative office can facilitate technical and financial collaborations between a parent company and its Indian partner as well as encourage import & export from/to India.
2.2. Project Office:To initiate specific projects a foreign entity has the option of setting up a temporary project/site office in India. Such project offices can only carry forward the activities for which they have been permitted to set up. They are limited to execute any activity which does not fall within the scope of the project.
Branch OfficeForeign companies requiring a physical presence to conduct their business without the rigmarole of setting up a separate legal entity, have the option of setting up their Branch Offices in India. These branch offices are not permitted to initiate manufacturing activities on their own however they may reallocate the role to an Indian manufacturer. A branch office of a foreign entity in India is allowed to conduct the following actions in the country:
- Import and Export of goods
- Rendering professional and consultancy services
- Carry forward research work in relation to the business of the parent company
- Promoting technical and financial collaborations with Indian and overseas companies on behalf of the parent company
- Acting as a buying/selling agent for the parent company in India and representing the parent company in India
- Assisting the parent company in the development of software or IT related requirements
- Rendering technical support to the parent company with respect to the products or services that the parent company offers
- Foreign airlines/shipping company
India: An Attractive Destination For Businesses
Establishing a company in India – OverviewThe Indian economy is one of the fastest-growing economies in the world with GDP growth of around 7 – 8% and a population of over 1 billion as per World Bank Data (2016). The statistics show that India as of now boasts of a profitable and stable economy and has already entered the league of emerging markets thus making it an attractive option for foreign investors.
Procedure for setting up a company in India
- Private Limited Company (PLC);
- Public Limited Company (PC); or
- Limited Liability Partnership (LLP), informally known as a corporation. Investment sums that are invested by an investor, in such formats, are limited to the company’s shares.
How To Set Up A Business/Company In India
Efficiently incorporate a company in India with the help of our expert team and make your business launch a hassle-free experience. The incorporation procedure of a private limited company, specifically for US Company incorporation in India, is governed as per Companies Act 2013 and can be explained through the following steps:
Proposed name for the companyIn order to hold an available name, a series of documentation is to be provided by the applicant such as
- The main object of the company
- Up to 6 proposed names in order of preference
- Details of a minimum of two promoters and
- Details of the minimum of two directors.
Directors and subscribersFor a Private Limited Company
- a minimum of 2 directors are required
- a minimum of 2 subscribers are required
- a minimum of 3 directors are required.
- a minimum of 7 subscribers are required.
Director Identification Numbers (DIN)It is recommended for all proposed directors to obtain a DIN.
Digital Signature Certificate (DSC)A DSC is required to validate the documents digitally, which are sent to the Company Registrar (ROC) or other authorities, such as tax authorities.
Memorandum & Article of Association (MOA), (AOA)These are mandatory legal documents containing crucial information about the company and sets out the company’s necessary working procedure, its rules, and regulations.
Registered OfficeIt is mandatory for any company to have a registered office in India from the date of incorporation and it should be publicly accessible for correspondence of documents and notices.
IncorporationPost acceptance and approval on all legal documents required to incorporate a company by ROC, a certificate is issued and from thereon, a private company can begin its activities. Whereas, for a Public Company, it is required to obtain a Company Start-up Certificate from ROC as well.
Post IncorporationThe legal work does not end with the incorporation of the company. Post incorporation a company needs to undertake series of Compliances and Statutory Registrations, such as; Opening of bank accounts, maintaining of books, allotment of shares, IT registration, Import Export Codes, Sales Tax registration, Service Tax registration, Central Excise Registration, and others which A&A provides to its client on a daily basis as an In-house/ General Counsel legal service.
Role Of Ahlawat & Associates In Setting Up In India
- Advise on Entry Strategy and structuring of Business set up in India
- Identification and selection of the place of business
- Incorporation of the Company or Branch or Liaison Office in India
- Bank account opening and getting Finance
- Getting approvals at various regulatory bodies/agencies
- Ongoing compliance with all laws and regulations
- Accounts and Payroll maintenance
- Compliance with FEMA/RBI for fund transfers
Meet the team
Frequently Asked Questions
Few most frequently asked questions on setting up a company in India. Feel free to contact us for any other queries.
1. How to set up a PLC in India?
- Checking the Name Availability and Obtaining Name Approval for the proposed Company
- Obtaining Digital Signature Certificates (DSC)
- Obtaining Director Identification Numbers (DIN)
- Drafting and filing of Incorporation documents and e-forms
- Drafting and filing of documents for notifying registered office address
2. How to set up a LLP in India?
- Apply for a Designated Partner Identification Number (DPIN).
- Acquire Digital Signature Certificate and register the same on the MCA portal. Get the LLP name approved by the Ministry Of Corporate Affairs.
- Once the LLP name is approved,You can register the LLP by filing the incorporation form.
- Filing an LLP agreement.
3. Why choose A&A for setting up a company in India?
4. Why choose A&A for Business Setup Services?
A Comprehensive Guide on Foreign Subsidiary Company Compliances in India
A foreign subsidiary company is a subsidiary (holding majority shareholding) that a parent company sets up in any foreign country. The subsidiary operates as a separate legal entity and is responsible for conducting business in the foreign country. Setting up a foreign subsidiary company can provide many benefits, such as access to new markets and …
A Comprehensive Guide on Foreign Subsidiary Company Compliances in India Read More »
Setting up a Subsidiary in India: How Can Foreign Companies Set Up Subsidiaries In India?
India is one of the world’s fastest-growing economies and a very lucrative market for foreign companies. Setting up a subsidiary in India could be a viable approach for foreign companies to expand their operations and gain exposure to this large customer base. But the process of setting up a subsidiary in India can be complicated …
Setting up a Subsidiary in India: How Can Foreign Companies Set Up Subsidiaries In India? Read More »
Advantages of Wholly Owned Subsidiary in India
A wholly owned subsidiary is a company in which another company, which is generally called the parent company, owns the whole shareholding. Instead of functioning as an integral division or unit of the parent company, the subsidiary typically runs independently of it, having its own senior leadership structure, products, and clientele. Nonetheless, the parent company …
Steps For Incorporation of a Wholly Owned Subsidiary In India
Wholly Owned Subsidiary (WoS) refers to an independent and separate legal entity or a corporation with 100% of its shares held by another corporation, termed as the ‘parent company’. The parent company often governs the decision-making of the WoS. A WoS can be created either through a takeover by the parent company or by splitting …
Steps For Incorporation of a Wholly Owned Subsidiary In India Read More »
Foreign Exchange Management (Overseas Investment) Directions, 2022
The Foreign Exchange Department (“FED”) of the Reserve Bank of India (“RBI”) vide notification dated on August 22, 2022 has notified the Foreign Exchange Management (Overseas Investment) Regulation, 2022 (“OI Regulation”) and the Central Government vide notification dated August 22, 2022 has notified the Foreign Exchange Management (Overseas Investment) Rules, 2022 (“OI Rules”) superseding the …
Foreign Exchange Management (Overseas Investment) Directions, 2022 Read More »
India a Lucrative Market for Russian Pharmaceutical Investors and Companies
Indian pharmaceutical industry plays a substantial role in the international pharmaceutical sector, in fact, India ranks 3rd in terms of production of drugs in volume and ranks 14th in terms of value. India is the world’s largest provider of generic medications, accounting for 20% (twenty percent) of worldwide supply by volume, and it is also …
India a Lucrative Market for Russian Pharmaceutical Investors and Companies Read More »
Start a Booming Solar Energy Business in India
The surge in the global power demand and consumption has highlighted the importance of renewable and sustainable energy sources. Owing to the Indian government’s promising initiatives, schemes and programs, solar power generation has increased in the recent years encouraging experienced businessmen and startups to invest in solar energy businesses and reap huge profits. Before we …
How Foreign Companies Can Start a Business in India
Given India’s rapidly growing market, the country’s potential has enticed a slew of foreign companies to establish their presence in India. Over the last few years, initiatives have been taken to ensure that establishing a business in India becomes easier and foreign companies are encouraged to invest in the country. Under the Companies Act, 2013 …
How Foreign Companies Can Start a Business in India Read More »
India: Jurisdiction for Incorporating Business Startups
A Start-up is faced with several issues that have to be dealt with in order to grow into a successful organization. In the beginning, an entrepreneur is required to take two key decisions i.e., where and when to incorporate a new Start-up. Apart from planning the most effective business strategy, the Start-up needs to look …
India: Jurisdiction for Incorporating Business Startups Read More »
Key Advantages of Doing Business in India
India is the largest democracy in the world with a massive population of approximately 1.3 billion people and is a profitable market for international companies to start up a new venture. At present, India is considered as one of the major forces in the global economic market as it stands in the 6th position in …
Factors to weigh before choosing a Legal Structure for Your Business
The business structure that is chosen influences regular day-to-day operations, taxes and personal liability. In the earlier article, we discussed the types of business structures permitted in India and in this write-up, we would discuss the factors one must consider to choose a business structure that gives the business the right balance of legal protections …
Factors to weigh before choosing a Legal Structure for Your Business Read More »
Types of Business Structures in India
Whether you are on an organized growth trajectory or are just starting, the legal structure would serve as an essential part of running a business. Every company in India must be registered under the Companies Act 2013. For this purpose, every establishment must understand its options and have a legal structure that is permitted by …
Legal Requirements for Starting a Business in India
Starting a new business venture in India is not as easy as it might seem. Several legal formalities are to be complied with, for both new as well as established businesses and startups. Some of these formalities include financial regulations, tax obligations as well as employment law regulations, which are central to the functioning of …
Legal Requirements for Starting a Business in India Read More »
Get in touch with us today
We can be reached at